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The Lead

A decision was made by the Canada Energy Regulator on Tuesday to go forward with a hearing process that was called for by Enbridge Inc., in an effort to get contracts signed for the development of their Mainline pipeline project. This hearing has been challenged by multiple smaller energy companies in Canada, including Canadian Natural and Suncor who had requested that the hearing be delayed until after the coronavirus pandemic subsided.

Canadian oil companies are concerned about the timing of the hearing, because if Enbridge gets its contracts signed then smaller companies will be required to sign new contracts when the industry is currently struggling. The contracts, if signed, would see Enbridge’s short-term shipping commitment system transition into an arrangement that uses 90 per cent long-term contracts.

A two-stage hearing was also requested by Canadian crude producers, the first which would have analyzed whether the change Enbridge is looking to implement should be allowed in the first place, and the second phase would have considered tolling costs. This two-stage process was rejected by the CER who said that “the commission is not persuaded that a two-phase process is likely to achieve greater efficiency.”

TC Energy Corp. has become the newest member of a hydroelectric power project being built by WindRiver Power Corp., a company based in Calgary. The Canyon Creek project is being constructed in Alberta beside Obed Mountain thermal coal mine, an old open pit coal mine that was closed back in 2012, reports The Canadian Press.

The ownership deal between both parties is yet to be revealed, according an email written by Jennifer Link, a spokesperson for TC Energy. The $200-million project could start construction as soon as the end of the year, according to Kipp Horton, the CEO of WindRiver.

Meanwhile, Chinese Shandong Gold Mining announced on May 8 that they have made a “definitive agreement” to purchase TMAC Resources’ Hope Bay gold mine project, located in Nunavut’s Kitikmeot region.

The $230 million purchase has yet to be supported by the Kitikmeot Inuit Association, a land claim organization that represents the interest of the Inuit in the region.

A protest took place at Iraq’s Basra Gas Company headquarters this week sparked by delays of payment. As a response to a security breach, Royal Dutch Shell proceeded to evacuate close to 60 foreign staff from the Basra Gas Company.

“All staff and contractors are safe and BGC production is not impacted,” wrote Shell in an email, according to Reuters.

In other news, multiple drilling companies will receive royalty relief from the Trump administration which has been approved by the U.S. Bureau of Land Management. So far, the government database shows that 76 drilling leases have been granted to companies in the state of Utah in the last few weeks, but has yet to show information about other states.